In the afternoon of the 5th's trading, the following 3 points are worth noting.
- The Nikkei Average continues to decline, falling below the 25-day moving average due to the progress of yen appreciation.
- The dollar/yen is firm, with a buyback of the dollar.
- Tokyo Electron Ltd. <8035>, is the top-selling company's second, Recruit HD <6098>, contributing to the price drop.
■ The Nikkei Average continues to decline, falling below the 25-day moving average due to the progress of yen appreciation.
The Nikkei average continues to fall. It closed the morning session at 38,527.60 yen (with an approximate volume of 860 million shares traded), down 309.86 yen (-0.80%) from the previous day.
The U.S. stock market rose on the 4th. The Dow Jones Industrial Average ended the session at 38,711.29 dollars, up 140.26 dollars (+0.36%), the Nasdaq rose 28.38 points (+0.17%) to 16,857.05, and the S&P 500 rose 7.94 points (+0.15%) to 5,291.34. After some fluctuations due to uncertainty about the economy and interest rates, the market turned upward as the JOLT job openings report released later was below expectations, rekindling hopes for a rate cut in September. The Nasdaq saw a mix of profit-taking selling and buying due to the decline in interest rates, but it rose as Nvidia in the semiconductor industry rose. The market extended its gains and closed higher.
Although U.S. stocks rose, the yen's appreciation and other factors were a drag on the Tokyo market, which opened with a selling bias. While the Nikkei fell as low as 38,343.98 yen at one point, the decline was partly supported by rising real estate stocks, which were buoyed by the decline in interest rates. Both Japan and the U.S. are now under the influence of fluctuations in interest rates.
Among the Nikkei average constituent stocks, Recruit Holdings <6098>, and Mitsukoshi-Isetan <3099> were pushed down due to profit-taking selling, while Kawasaki Kisen <9107>, Kawasaki Heavy Industries <7012> and Mitsubishi Electric <6503> were sold. In addition, some semiconductor-related stocks such as SUMCO <3436> and SCREEN Holdings <7735> were also sold off.
On the other hand, retail-related stocks such as Nichirei <2871>, Nitori Holdings <9843>, and Seven & i HD <3382> rose as the yen appreciated and the dollar fell to around 154 yen. In addition, real estate stocks such as Mitsui Fudosan <8801>, Mitsubishi Estate <8802>, Sumitomo Realty & Development <8830>, and Tokyu Fudosan HD <3289> were also bought due to the decline in interest rates in Japan and the U.S.
Insurance, marine transportation, mining, nonferrous metals, and iron & steel declined, while real estate, pharmaceuticals, electric & gas, precision instruments, and land transportation rose by industry.
The Philadelphia Semiconductor Stock Index (SOX Index) is not showing much adjustment, but the prices of semiconductor stocks such as Tokyo Electron <8035> and Advantest <6857> are not doing well due to the cessation of foreign buying. In this situation where there are few factors to attract foreign buyers, if semiconductor stocks, which are also driving forces, remain heavy, the Nikkei Average is likely to continue to range between 38,000 yen and 39,000 yen. The Nikkei Average is below the 25-day moving average of 38,576 yen, but the decline has narrowed, so the afternoon is expected to be a stalemate across the 25-day moving average.
■ The dollar/yen is firm, with a buyback of the dollar
On the morning of the 5th, the dollar/yen rose firmly from 154.79 yen to the 155.50 yen range. Yesterday, the dollar fell sharply due to the strong yen, and today, there is a predominance of buybacks from the undervalued position. Due to the shrinking decline of the Nikkei Average, the yen buying that was wary of the decline in the stock market weakened.
The trading range so far is 154.79 yen to 155.59 yen for the dollar/yen, 168.40 yen to 169.32 yen for the euro/yen, and 1.0876 dollars to 1.0885 dollars for the euro/dollar.
Check stocks for the afternoon session
- Four stocks, including Jii Sea Planning <4073> and Coly <4175>, hit the limit up.
*Includes temporary stopper (indicated price)
- Tokyo Electron Ltd. <8035>, is the top-selling company's second, Recruit HD <6098>, contributing to the price drop.
Economic indicators and remarks by important people
[Economic indicators]
- Monthly labor statistics for April: Cash earnings total: +2.1% year-on-year (forecast: +1.8%, March: +1.0%)
- Australian Q1 GDP: +1.1% year-on-year (forecast: +1.2%, Q4: +1.6% ← +1.5%)
- May Caixin Services PMI: 54.0 (forecast: 52.5, April: 52.5)
[Important Person's Remarks]
- Relevant persons
"The Bank of Japan may consider reducing the purchase of Japanese government bonds as early as this month's meeting".
"The Bank of Japan will avoid major market fluctuations even with a reduction in purchases under the new policy".
"The Bank of Japan will judge after observing market changes until just before the meeting".
Not applicable.
Not applicable.